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LAKE STEVENS—The American Rescue Plan Act (ARPA), signed into law on March 11, 2021, by President Joe Biden, provided $350 billion through the Coronavirus State and Local Fiscal Recovery Funds to state, local, territorial, and Tribal governments to support recovery from the COVID-19 pandemic. Cities with populations under 50,000, such as Lake Stevens, received funds through state governments, allocated based on population share, with a cap at 75% of their most recent budget as of January 27, 2020. In Lake Stevens’ case this amounted to $9,475.434.

Local governments had to obligate the funds by December 31, 2024, and spend the monies no later than December 31, 2026. The City of Lake Stevens still has a remainder of $685,096 left to be allocated/spent.

Below is a breakdown of where the Lake Stevens City Council spent it’s ARPA funds:

Staffing

• Capital/Grant Accountant (3-year allocation), $190,454
• Human Resources Technician, part time (3-year allocation), $197,818
• Custodian/Facility Maintenance and Equipment (3-year allocation), $544,544
• SWM – Field Technician and Equipment (3-year allocation), $390,454
• Safety/EM/Risk Manager and Equipment (3-year allocation), $221,363

Technology

• Financial Software (various modules), $100,000
• Mill Technology Upgrades (Council Chambers – Remote Meetings), $20,000
• VUEWorks 3-Year MSA (Public Works – Works Orders), $94,636
• CDWG SOW (0365 Data Management) , $60,000
• NeoGOV Onboard/eforms (remote onboarding/training), $22,020
• Laserfiche to SharePoint Migration (Data Management), $6,500
• PowerDMS (Policy Management), $6,500
• Civic Rec (Online Park & Recreation Module), $39,400
• Civic Clerk (Online Agenda Module), $19,500

Assistance

• Food Bank (community assistance), $950,000
• Volunteers of America (community assistance), $50,000
• Senior Center (community assistance), $30,000

Supplies

• PPE, Disinfection, Training, $536

Equipment

• Slope Mower (for Ponds – 90 city/130 private), SWM Pond Maintenance, $158,048

Services

• Citywide Salary Survey (staffing needs), $18,504
• Septage Treatment Facility Feasibility (Park and Recreation), $54,389
• Infrastructure/Market Analysis – Hartford (Sewer/Stormwater), $109,999
• Economic Development Analysis and Recruitment (Economic Development), $128,012

Capital Projects

• HVAC System Upgrade (Police Facility), $133,709
• 131^st Sewer Infrastructure – Grant Match (Sewer/Stormwater), $12,500
• Davies Beach Pier Restoration (Parks and Rec), $50,000
• North Cove Pilot Project – Skate Park and Park Features (Parks and Rec), $25,952
• Eagle Ridge Park (Parks and Rec), $459,000
• Eagle Ridge Park – Property Acquisition and Restoration (Parks and Rec), $925,000
• Frontier Heights Park – Phase II (Parks and Rec), $225,000
• Lake Stevens Bayview Connector Trail (Parks and Rec), $500,000
• 91^st/24^th SE Infrastructure Project (Infrastructure), $500,000
• Museum Design/Construction (Museum), $680,700
• Municipal Campus Design/Construction (Municipal Campus), $1,810,300
• 1% Allocation to Art for Capital Construction (Various), $35,000

Lake Stevens City Council accepted ARPA grant funds and authorized the Mayor Brett Gailey to elect the “standard allowance” for lost revenues, to be used for the provision of government services. For ease of reporting, the City reported and claimed staff payroll and benefit costs to the Department of Treasury, an allowable use of funds. Grant funds were fully recognized by 2023, well within the original granting period.

By using the $9,475,434 in ARPA funds received for payroll and benefits costs, the “reimbursed” funds became unrestricted, affording the City more flexibility in their use to include any governmental service, not just those originally outlined in the grant agreement, and removing the limited timeframe for expenditure.

Expenditure transactions are recorded in the Pandemic Recovery managerial fund and are part of the annual budget process. Most of the funds have either been spent in previous years or are encumbered for specific projects.  Approximately $685,000 remains available.

ARPA Funds were eligible for the following uses:

• Replace lost public sector revenue due to the pandemic.
• Respond to public health and economic impacts (e.g., aid to households, small businesses, nonprofits, and affected industries like tourism).
• Provide premium pay for essential workers.
• Invest in water, sewer, and broadband infrastructure.
• Support surface transportation and Title I projects (e.g., Community Development Block Grant activities).
• Provide emergency relief for natural disasters.
• Funds could not be used for pension fund deposits, tax reductions, or to offset tax delays.

Municipalities were required to submit Project and Expenditure Reports to the U.S. Treasury, no later than April 30, 2025. Non-compliance, like late submissions, could lead to adverse action from the Treasury, including federal recapture of funds.

Author: Kienan Briscoe